New Law Requires Disbarment of Attorneys Who Engage in Illegal Client Solicitation Practices

AB 2039 cracks down on illegal client solicitation, protects whistleblowers, and establishes safeguards for attorney-client financial agreements

SACRAMENTO, CA - Democratic Caucus Chair and Assemblymember Rick Chavez Zbur (D-Hollywood) announced today that Governor Gavin Newsom has signed AB 2039, legislation to protect consumers and strengthen accountability within California's legal profession. Sponsored by Consumer Attorneys of California, AB 2039 requires mandatory disbarment for attorneys convicted of illegal client referral practices, protects individuals who report attorney misconduct from retaliation, and establishes safeguards governing loans and financial advances between attorneys and their clients.

"This law goes after bad actors in the legal profession who prey on vulnerable people," said Assemblymember Rick Chavez Zbur. "Every client deserves to know that the attorney representing them is acting in their best interest. AB 2039 requires mandatory disbarment proceedings for attorneys convicted of serious illegal client solicitation practices, protects people who have the courage to report attorney misconduct, and puts stronger safeguards in place to protect clients from financial exploitation. Attorneys have an obligation to put their clients first, and those who abuse that trust should be held accountable."

California law already prohibits illegal client referrals, commonly known as "capping," and regulates conflicts of interest involving attorney-client financial arrangements. However, recent allegations of attorney misconduct have highlighted gaps in enforcement and consumer protections.

Reporting by the Los Angeles Times detailed allegations involving attorneys and recruiters soliciting vulnerable individuals as clients, including allegations of payments in exchange for participation in claims. Such misconduct can harm consumers, undermine public confidence in the legal profession, and divert resources away from legitimate victims seeking justice.

AB 2039 strengthens California law by:

• Requiring mandatory summary disbarment proceedings for felony illegal capping convictions and misdemeanor convictions involving knowing financial gain;
• Protecting whistleblowers who report attorney misconduct from termination, harassment, blacklisting, and other forms of retaliation; and
• Establishing consumer protections for attorney-client loans and financial advances, including separate agreements, informed consent requirements, protections against hidden fees or interest, and a cooling-off period before signing.

"Ethics in the legal profession isn't optional for CAOC, it's the foundation of everything we do, because consumer protection is why we exist," said Doug Saeltzer, President, Consumer Attorneys of California. "If we're going to demand that corporations, government, and powerful institutions be held accountable, we have to be, and we are, willing to hold ourselves to that same standard. We want to thank Asm. Zbur for his leadership on AB 2039, which earned bipartisan support in both houses of the Legislature. With Governor Newsom's signature, it's now the law of the land."

By strengthening enforcement, encouraging individuals to report misconduct, and establishing clearer protections for consumers entering financial arrangements with their attorneys, AB 2039 will help deter unethical practices while reinforcing trust in California's legal system. AB 2039 will take effect January 1, 2027.

Assemblymember Rick Chavez Zbur serves as the Democratic Caucus Chair for the California State Assembly and represents the 51st Assembly District, which includes Universal City, Hollywood, Hancock Park, West Hollywood, Beverly Hills, Westwood, West Los Angeles, Santa Monica, and other portions of Los Angeles.

CONTACT: Vienna Montague, (916) 319-2051, [email protected]